U.S. Markets closed

Free Research Report as Premier’s Revenues Advanced 15% and Adjusted EPS Advanced 9%

Stock Monitor: Cotiviti Holdings Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 27, 2018 / Active-Investors.com has just released a free earnings report on Premier, Inc. (NASDAQ: PINC). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=PINC. The Company reported its second quarter fiscal 2018 operating and financial results on February 05, 2018. The health care data services Company surpassed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Cotiviti Holdings, Inc. (NYSE: COTV), which also belongs to the Technology sector as the Company Premier. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=COTV

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Premier most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=PINC

Earnings Highlights and Summary

For the second quarter ended December 31, 2017, Premier generated net revenues of $411.4 million, reflecting an increase of 15% from $358.5 million in Q2 FY17. The Company's revenue numbers exceeded analysts' estimates by $18.54 million.

Premier's net income was $19.77 million in Q2 FY18 compared to $246.2 million in Q2 FY17. In accordance with GAAP, the Company's net income in Q2 FY18 and Q2 FY17 included non-cash adjustments of $317.9 million and $335.3 million, respectively, to reflect the change in the redemption value of limited partners' Class B common unit ownership at the end of each period. After these non-cash adjustments, Premier's net income attributable to stockholders was $0.50 per share compared to $0.46 per share in the reported quarter.

During Q2 FY18, Premier's non-GAAP adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 9% to $133.5 million from $122.0 million in Q2 FY17. The Company's adjusted EBITDA growth was primarily driven by growth in net administrative fee revenues, including contributions related to the Innovatix and Essensa acquisition, net of the reduction in equity in net income of unconsolidated affiliates, due to acquiring the remaining 50% of Innovatix, along with an increase in product revenues.

Premier's GAAP net loss per diluted share was $1.66 in Q2 FY18 compared to a diluted net income per share of $1.50 in Q2 FY17. The Company's non-GAAP net income increased 7% to $70.0 million from $65.2 million in the year earlier same quarter. The Company's adjusted fully distributed EPS increased to $0.50 from $0.46 in Q2 FY17.

Segment Results

During Q2 FY18, Premier's Supply Chain Services segment generated net revenues of $324.9 million, reflecting an increase of 19% from $272.7 million in Q2 FY17, driven by growth in the Company's group purchasing organization (GPO) and products businesses. GPO net administrative fees revenues grew 23% to $159.3 million on a y-o-y basis, primarily driven by contributions from the Innovatix and Essensa businesses, which were acquired in December 2016. The segment's Product revenues increased 14% to $162.1 million in Q2 FY18 from $142.4 million in Q2 FY17, attributable to a double-digit growth from both the integrated pharmacy and direct sourcing businesses.

The Supply Chain Services segment's adjusted EBITDA increased 11% to $132.0 million in Q2 FY18 from $119.0 million in Q2 FY17. The increase largely reflects growth in net administrative fees revenues.

During Q2 FY18, Premier's Performance Services segment generated net revenues of $86.5 million, representing a 1% increase from $85.9 million in Q2 FY17, primarily due to a growth in the Company's informatics and technology services business, primarily related to cost management solutions and a growth in ambulatory quality solutions.

The Performance Services segment's adjusted EBITDA fell 2% to $27.9 million in Q2 FY18 from $28.6 million in Q2 FY17. The growth was impacted by an increase in cost of sales, primarily related to an increase in staffing and costs to support growth and performance-based engagements, and was impacted on a comparable basis due to higher revenue recognition from performance-based engagements in the prior year.

Cash Flows and Liquidity

Premier's cash provided by operating activities was $206.5 million in H1 FY18 compared to $138.4 million in H1 FY17. The increase in cash flow from operations was primarily driven by an increase in net administrative fees, as well as decreased outflows related to working capital needs. At December 31, 2017, the Company's cash and cash equivalents totaled $163.0 million compared to $156.7 million at June 30, 2017.

Through December 31, 2017, Premier repurchased approximately 2.6 million shares of Class A common stock for $74.7 million. The repurchases took place under the Company's ongoing $200.0 million stock repurchase program, which was announced on October 31, 2017, which authorizes shares to be repurchased through June 30, 2018.

The Company's non-GAAP free cash flow was $122.2 million in H1 FY18 compared to $59.4 million in H1 FY17.

Outlook

For the full fiscal year 2018, Premier is projecting non-GAAP adjusted fully distributed EPS to increase to $2.24 - $2.37.

Stock Performance Snapshot

February 26, 2018 - At Monday's closing bell, Premier's stock was slightly up 0.31%, ending the trading session at $32.56.

Volume traded for the day: 713.86 thousand shares.

Stock performance in the previous three-month period – up 14.25%; and past twelve-month period – up 3.89%; and year-to-date – up 11.55%

After yesterday's close, Premier's market cap was at $4.37 billion.

The stock is part of the Technology sector, categorized under the Healthcare Information Services industry. This sector was up 1.2% at the end of the session.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com
Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors